The initial rate is 4.19% fixed until 30th September 2019 and includes a free standard valuation up to £335. Remortgage customers also benefit from a free in-house legal service for standard re-mortgages. It is available up to 60% LTV, with a £199 booking fee and £400 arrangement fee.
In July 2013, Leeds Building Society launched a dedicated product range to support a growing sub-segment of buy to let which invests in holiday lets. The new product range created new lending opportunities whilst simultaneously supporting the UK leisure and tourism industry.
John Cupis, Managing Director, Mortgages, at SBG, commented:
Following the success of the original launch, this exclusive product supports demand in the UK, which has increased significantly over the past five years. According to new figures from Travelodge, almost three quarters (74%) of Britons will take a summer break in the UK this year, which has risen every year since 2010, when the rate was 33%.
Kim Rebecchi, Sales and Marketing Director at Leeds Building Society said:
Holiday let provides an appealing alternative to buy to let, with attractive rental returns and a second home rolled in to one.
We estimate that up to two thirds of existing holiday let landlords would refinance their current deal in order to reduce their costs and maximise their income, but choice is limited. Leeds Building Society is able to support the UK holiday market with its dedicated product range, which is suitable for new and existing holiday let landlords.
Careful selection of holiday homes in coastal resorts and National Parks can generate attractive financial returns with consistent rental demand throughout the year, according to Leeds Building Society.
For example, a two bedroom holiday cottage in Keswick let for 39 out of 52 weeks per year can attract rent of around £350 per week, rising to £650 in peak periods. Assuming an average rent of £400 per week, around £15,000 annual rental income is generated, significantly greater than a comparable two bedroom residential buy to let property.
According to the Holiday Lettings Insight Report, holiday rentals generated in excess of £540m income in 2011. However, we know that funding for prospective holiday home landlords remains scarce, with only a handful of lenders in the market.
Holiday let landlords typically benefit from a rental premium, as well as a holiday home for their own use. This combination makes it an attractive investment and our team of mortgage underwriters understand this market well. This exclusive deal for ARs of Sesame offers an attractive addition to our core range of holiday let products.